Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : NetBank(NTBK)-formerly Atlanta Internet Bank -- Ignore unavailable to you. Want to Upgrade?

To: AugustWest who wrote (1690)	5/5/1999 8:54:00 AM
From: jjs_ynot	Respond to of 2414

Equitex Signs Definitive Agreement with First TeleBanc Corp. to Acquire 100% of Net1Bank, N.A. ENGLEWOOD, Colo. and PALM BEACH GARDENS, Fla., May 5 biz.yahoo.com /PRNewswire/ -- Equitex, Inc. (Nasdaq: EQTX - news) announced today it has signed a definitive agreement to merge with Boca Raton, Florida based First TeleBanc Corp. (''First TeleBanc''). A letter of intent had been signed between the two companies in April. First TeleBanc is the bank holding company for Net1Bank, NA, formerly known as Boca Raton First National Bank, a 13 year-old nationally chartered bank based in Boca Raton, Florida (''Net1Bank'' or the ''Bank''). As a result of the merger, Equitex will acquire all of the outstanding capital stock of Net1Bank, change its name to Net1Bank Corp., and apply with the Nasdaq Stock Market for the symbol NBNK. Under the agreement, the Net1Bank stockholders will receive shares of Equitex common stock based upon the relative value of each company, however, in no case will the existing stockholders of either company receive less than 42.5% of the outstanding stock of the resulting entity. The merger will be subject to the customary regulatory and stockholder approvals. Equitex will immediately file for regulatory approval with the Federal Reserve Bank of Atlanta. A stockholder meeting to vote on the merger will be scheduled as soon as possible. Under the terms of the agreement, First TeleBanc's existing board of directors will become the board of the new bank holding company formed as a result of the merger, Net1Bank Corp. Certain of the current non-financial services related assets of Equitex will be spun off to the Company's stockholders through a newly formed investment company. This company will be a publicly traded entity managed by Henry Fong and the current Equitex board. ''Net1Bank is positioning itself to become a leader in online banking, while continuing to focus on highly profitable fee-based programs such as SBA (Small Business Administration) lending, secured credit cards and electronic transaction processing,'' said Keith Duffy, Chairman of Net1Bank. ''Since we started our SBA program sixty days ago, we have seen tremendous production, closing over $3.5 million in loans.'' The Bank is one of the top SBA lenders in the southeastern United States with a current loan pipeline of over $35 million. First TeleBanc Corp. is a bank holding company regulated by the Federal Reserve Bank of Atlanta, which owns Net1Bank, National Association, formerly known as Boca Raton First National Bank, a 13-year-old nationally chartered bank based in Boca Raton, Florida. First TeleBanc Corp. is not affiliated with TeleBanc Financial Corporation, in any way. Equitex, Inc. is a holding company that currently operates through its wholly owned subsidiary, First TeleServices Corp. of Atlanta, Georgia. First TeleServices Corp. is a financial services marketing company offering various financial products targeted to the subprime consumer. Equitex currently owns 9.9% of, and has executed a definitive agreement to merge with, First TeleBanc Corp., a single bank holding company which owns Net1Bank, NA based in Boca Raton, Florida. Except for the historical information presented herein, the matters set forth in this press release are forward-looking statements within the meaning of the ''safe-harbor'' provision of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed in the Company's periodic reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements. SOURCE: Equitex, Inc.